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That would be the responsible thing to do. So they absolutely will not. They will continue to blame everyone but themselves.

The intent of the Social Security Amendments of 1983 was not followed. The surplus Social Security revenue from the tax hike was supposed to be saved and invested in marketable Treasury bonds to build up a reserve with which to finance the retirement of the baby boomers.

I sincerely hope that this will end the argument that SS is some kind of freebie "ENTITLEMENT" program.

YES we are entitled. If the program were administered as it should have been, the TRUST FUND would have the money.

It is plain and simple, the "special obligations" is the money that the government unlawfully stole and needs to repay.

So much for the full faith and trust of the US govt.

The Supreme Court upheld far prior to 1983 that Social Security is not an entitlement - it is a tax. See e.g. Flemming vs. Nestor (1960). You are not entitled to anything, and anyone who told you otherwise was just buying your vote. Your money was spent as soon as they got it.

As stated, the INTENT in 1983 was to help offset the 1960 ruling. While it may not have been enough, it would have helped fund things until a better solution was formulated.

All this is really too bad because when it falls down its going to be ugly. So many people depend on Social Security. Of the 9 houses in my neighborhood I know that 5 of the 9 depend on SSI every month to survive. 2 because of work related injuries and 3 have retired. This is so typical. All of my life ive paid into this with the understanding that when i retired the money would be there to supplement my retirement. Now the cards are on the table and oh BTW we are broke and have robbed all the money for other things like foreign aid to people who hate us. I predict they will come after the 401k funds before its all over. I believe weve lost our moral compass and as a result we are faced with things just like this.

Sort on and dont stop stacking

Mongo

It is sad to see so many people who depend on it, knowing that it's probably going to hit a wall at some point. I'm in my early 30s and have always assumed that it's just another ridiculously high tax that I'm going to get hammered with. I live and work under the assumption that I will never, ever see a dime of it. If I get old and do get a little, it's going to be more than I expect.

I just want to opt out of it, if it is going to become another tax burden. Let people take care of themselves.


Social security was bound to fail at some point anyways.


Let the people who have paid in, take out what they have paid in.

maybe they could take some of the money they used to bail out corporate america, and give it to the people that paid into social security....



it is becoming more invaluable to work in this country daily, I wonder what will happen if everyone just stops working.....

Hawkeye wrote:It is sad to see so many people who depend on it, knowing that it's probably going to hit a wall at some point. I'm in my early 30s and have always assumed that it's just another ridiculously high tax that I'm going to get hammered with. I live and work under the assumption that I will never, ever see a dime of it. If I get old and do get a little, it's going to be more than I expect.

I am in the same boat, but I do not see how they can just stop doing this without a good bit of warning toward the people. I am planning to never see it, but a lot of the older generations did not. I do not see it as very fair to them if it is just taken out overnight.

Every one of you who feel FICA (Social Security) is a total rip-off should contact a good CPA. There are legal methods for avoiding some FICA payments. Same thing goes for FUTA (Unemployment).

Become a Sub-Chapter S Corporation. Within the Sub-chapter S, you pay yourself a reasonable salary. All other profits within the Sub-chapter S are disbursed to you, the owner, as dividends. At year end, those dividends are subject to federal & state taxes, but not subject to FICA & FUTA payments.

Most of you can greatly reduce how much you pay into FUTA & FICA in this way.

The bad part is, you will be tempted to spend that money instead of investing it into your retirement.

Couldn't the IRS still go after you for the simple reason that you are doing all of that to avoid paying those taxes? The courts have long said that it doesn't matter whether you find a tax loophole - if you're doing it to avoid taxes, you're guilty. Ask Irwin Schiff.

Update: I'll answer my own question: Yes

Subchapter S-Corporations have become a target for audit by the IRS. A recent study of 500 S-corporation returns by the Government Accounting Office (GAO) shows that salaries to shareholders average $53,000 and distributions are $49,000. The GAO expressed concern to Congress that many S-corporation shareholders are not reporting the proper amount of salary and are possibly evading Social Security tax. Congress adopted a recommendation that the IRS place an emphasis on conducting audits in this area. The IRS has announced that it will audit 5000 S-Corporation tax returns across the country after the close of the 2005 filing season. The emphasis will be on returns that have the characteristics cited in the GAO study.

John_doe wrote:

Hawkeye wrote:It is sad to see so many people who depend on it, knowing that it's probably going to hit a wall at some point. I'm in my early 30s and have always assumed that it's just another ridiculously high tax that I'm going to get hammered with. I live and work under the assumption that I will never, ever see a dime of it. If I get old and do get a little, it's going to be more than I expect.

I am in the same boat, but I do not see how they can just stop doing this without a good bit of warning toward the people. I am planning to never see it, but a lot of the older generations did not. I do not see it as very fair to them if it is just taken out overnight.

It is unfair. To me, that's the sad part. I don't think they will just cut it off, but I can see them continuing to devalue the dollar to the extent that, while they are technically still paying out, you just can't buy much with the payments. Giving a fair warning to the people would require politicians to be honest and to admit that they have screwed up the whole thing, neither of which do I see happening. It's just a sad situation.

Well, while it is sad, anyone with half a brain (and I realize that's a small number of people) has had fair warning and has every resource necessary available to them to know that this was coming - for at least 30 years. I've worked my entire career of 30+ years planning my future under the presumption that I had to be responsible for myself outside of SS, and that it wouldn't be available to me or anyone younger than myself. And that the generation older than me had best beware as well. So, my sympathies have some limits. The consequences, however, will be heartbreaking.

brian0918 wrote:Couldn't the IRS still go after you for the simple reason that you are doing all of that to avoid paying those taxes? The courts have long said that it doesn't matter whether you find a tax loophole - if you're doing it to avoid taxes, you're guilty. Ask Irwin Schiff.

Update: I'll answer my own question: Yes

Subchapter S-Corporations have become a target for audit by the IRS. A recent study of 500 S-corporation returns by the Government Accounting Office (GAO) shows that salaries to shareholders average $53,000 and distributions are $49,000. The GAO expressed concern to Congress that many S-corporation shareholders are not reporting the proper amount of salary and are possibly evading Social Security tax. Congress adopted a recommendation that the IRS place an emphasis on conducting audits in this area. The IRS has announced that it will audit 5000 S-Corporation tax returns across the country after the close of the 2005 filing season. The emphasis will be on returns that have the characteristics cited in the GAO study.

Thanks for the update. I don't want to be audited any more than anyone else.